Potential Pepsi Offer Keeps Money and Talent in Barcelona
By: Matthew Magill
FC Barcelona has had no lack of success in the past decade, with the Guardiola era being followed with a stellar 2014-2015 season that resulted in the crowning of the historic treble, winning La Liga, Copa del Rey, and UEFA Champions League titles. Lionel Messi, considered by many of his peers and fans alike as the greatest player of his generation, claimed his fifth Balloon d'Or award to be named FIFA's best player of 2015. The looming question is whether FC Barcelona's success can continue when privately owned clubs that resemble corporate businesses such as the English power houses of the Premier League are able to offer more lucrative deals for international stars like Lionel Messi.
Being one of the last football clubs owned by its members, Barcelona lacks the financial security that comes with public or private ownership. To continue the success of the FC Barcelona brand and to keep the club in the hands of its members, continued success on the pitch is necessary. For a team rivaled against financial giants such as Manchester United, this means keeping Lionel Messi, Neymar, and Luis Suárez on the team. A club owned by its members may have trouble providing the capital to do so. A reported sponsorship deal with Pepsi will provide more than enough funding to keep the talent in Barcelona.
The monumental €60 million deal proposed to place Pepsi on the center of the Barcelona uniform instead of Qatar, overshadows even the historically large Chevrolet deal with Manchester United. On the eve of another potential UEFA Champions League title, one of the most tremendous deals in shirt sponsorship history could provide the funds to keep Barcelona not only competitive, but a leader on the player transfer market. The deal would allow Barcelona to stay competitive with English Premier League teams who will be taking in sizable funds from the recent Sky Sports TV deal, allowing them to retain ownership of Lionel Messi and their most talented players.
However, one must raise the question; with this astonishing inflow of funds surpassing what Manchester United is receiving, is FC Barcelona's business model any different than the corporate models that depend on foreign sponsorship? Does this deal threaten or support ownership by members?
http://bleacherreport.com/articles/2615235-barcelona-reportedly-eye-pepsi-shirt-sponsor-as-alternative-to-qatar-airways
Pepsi is a WAY better sponsor than Qatar Airlines. With all the conflict in the middle-east and all the controversy behind Qatar's successful bid to get the 2022 World Cup it is likely that Barca will not stick with Qatar Airlines after this season which they are smart to do. Pepsi is a more worldly, accepted sponsor anyway.
ReplyDeleteI agree with the comment above. Also want to add that Barcelona's president, Josep Bartomeau, recently said that the club's biggest threat is not their Madrid rivals, but the Premier League as a whole. This statement was largely based on the enormous amount of money that Premier League clubs receive for broadcasting rights and sponsorships due to the fact that it is the most watched league in the world. With that being said, I think FCB's move to switch sponsors to Pepsi is a no brainer from both a financial standpoint and an image standpoint, especially when considering the controversy and scandals surrounding Qatar's 2022 World Cup bid.
ReplyDelete@BofSport Controversies aside, a deal with Pepsi is more attractive from the simple marketing standpoint that they undoubtably have greater brand recognition and appeal than Qatar. After taking into account the controversies that surrounded the FCB-Qatar deal, it is a clear choice for FCB to pursue a deal with Pepsi if at all possible.
ReplyDelete@Austin DaCunha I agree that FCB and La Liga in general should be threatened by the Premier League. In my opinion, the English Premier League has far more talent than La Liga, and offers a more competitive and financially lucrative market for players like Messi, Suarez, and Neymar. I would not be surprised to see one of these beloved players, to the dismay of Catalonia, transfer to the Premier League in the next few years.
Best,
Matthew Magill
I think that this would be a smart move for both Barcelona and Pepsi. Not only is Barcelona getting a huge sum of money which will help them out on the transfer market, but Pepsi is my own opinion a better, more appealing brand than that Qatar Airlines on a worldwide scale. This deal will also be helpful for Pepsi, as it will help their marketing of Pepsi in Europe, where Coke is the primary soft drink. I have no doubt that Pepsi sales would increase if they are chosen as the sponsor, I just don't know if the sponsorship is worth the amount of money that Pepsi is offering.
ReplyDeleteBennett Jenson
Bennett,
DeleteI agree with you that the size of the deal seems ridiculously large. One must question whether Pepsi's European sales will increase in the exponential amount needed to rival Coke. Nevertheless, this is the ultimately decision of the board of directors of Pepsi, who clearly are very fond of the value the brand of FC Barcelona holds.
I also agree that this is a less controversial deal than the Qatar airways sponsorship, but I must add that this agreement would promote a sugary soda to the youth of Barcelona and of international football. There is no coach or manager within the youth club system that would hand their players a Pepsi after a tough day on the pitch. Thus, even the Pepsi deal raises some questions about FC Barcelona's sponsorship decisions.
Best,
Matthew Magill